Forex Trading Forecast: Asian Currencies

Asian currencies expected to weaken in FX trading

The forex trading forecast for Asian currencies points to continued weakness — at least for now. Asian currencies are expected to weaken in FX trading as the global economy continues to contract.

Asian currencies rely in great measure on exports to developed countries. With the recession, fewer consumers are making use of their goods, and this is causing some issues for Asian currencies, reports Bloomberg:

“There’s pressure on all Asian currencies at the moment,” said Thomas Harr, senior currency strategist at Standard Chartered Plc in Singapore. “We’re seeing very weak economic data in Asia because the growth in exports to developed countries is very weak. Our view is that the economy in Asia will bottom out around the end of the second quarter.”

However, if Ben Bernanke is right, and economic recovery begins toward the end of 2009 or the beginning of 2010, Asian currencies could see a revival later as the global economy recovers.